(PRWEB) May 6, 2010
Stock market panics make history and give investors nightmares. To help people do the right thing at the right time, Peter Brock has published "Panics and Bears", a guide that explains panics and what they mean.
You only have to say a year, like 1929 or 1987, to make investors feel nervous. Now you can add 2010. What happened on May 6 is another in a long line of stock market panics — brutal sell-offs that start without warning and shock investors all over the world with their speed and ferocity.
Here are four key points from "Panics and Bears":
1. Stock market panics can happen anytime, and are triggered by news. They start suddenly and quickly override all logic.
2. In a rush for the exits, buyers and market makers are trampled by wave after wave of frightened sellers.
3. A panic is to a bear market as a blizzard is to an ice age. Panics end with a bang and the market usually rebounds after the plunge.
4. Once a panic starts, it’s wise not to react. Don’t sell into a panic. Instead, prepare for the reflexive bounce that always follows a panic.
"Panics and Bears" was originally a chapter of The Investor’s Bodyguard Companion Guide, and is now a free download from http://investorsbodyguard.com
The Investor’s Bodyguard provides stock market strategy and tools like Brock Value, a valuation indicator, and the Four Phases, a market timing gauge. The Investor’s Bodyguard helps investors improve their results by calling the major and minor turns of the Standard & Poor’s 500 Index.
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